Business Context and Reporting Period
Company: Tanzanian Royalty Exploration Corporation (TRX Gold Corp)
Filing Type: Form 6-K (Report of Foreign Issuer)
Date: February 6, 2012
Subject: Announcement of high-grade assay results from the ongoing reverse circulation and diamond drilling program at the Buckreef Gold Project in the Lake Victoria Goldfields, Tanzania.
Key Financial Metrics
This filing is an operational news release and does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. The filing text does not provide a clear value for any financial metric.
Material Changes and Operational Results
The company reported significant high-grade gold intercepts from three diamond drill holes at the Buckreef Main Zone, Footwall, and Hanging Wall zones:
- Hole BMDD108: 16m grading 2.23 g/t gold from 149m, including a high-grade section of 2.0m averaging 7.03 g/t from 163m.
- Hole BMDD109: 35.35m grading 2.75 g/t gold from 131.65m, including 6.35m @ 5.75 g/t and 4.7m @ 4.33 g/t.
- Hole BMDD110: Targeted the Hanging Wall Zone (4.0m @ 1.08 g/t) and the Main Zone down-dip potential (30m @ 2.66 g/t from 145m, including 2.0m @ 6.5 g/t).
Management noted that these values are generally better than those drilled by previous operators. The drilling aims to upgrade Inferred resources to the Indicated category and increase pit wall limits for the Definitive Feasibility Study.
Guidance, Outlook, and Risks
Outlook: Approximately 10 more holes remain to be drilled at Buckreef Main to test down-dip potential ranging from 200m to 400m. The zone appears to increase in thickness at depth. Results from Footwall and Hanging Wall zones are expected to significantly increase existing resources.
Risks and Contingencies:
- Forward-Looking Statements: The release contains forward-looking information regarding resource potential and future drilling success, which involves risks and uncertainties.
- SEC Definitions: Terms such as "reserves," "resources," "proven," "probable," "measured," "indicated," and "inferred" may not be consistent with SEC reserve definitions. U.S. investors are urged to review SEC filings for compliant disclosures.
- Exploration Risks: Actual results may differ materially from expectations due to risks inherent in mineral exploration and development.
Investor Verification Checklist
- Verify the Qualified Person (Mr. Peter Zizhou) credentials and the specific geological assumptions used for the reported intercepts.
- Confirm the true width of mineralization, as reported widths are estimated to be approximately 60% of true width.
- Review the company's Form 20-F for SEC-compliant reserve and resource definitions, as this release uses NI 43-101 terminology.
- Monitor the progress of the remaining 10 planned drill holes to validate the down-dip potential claims.
- Assess the timeline and status of the Definitive Feasibility Study which will incorporate these new resource estimates.